UK pension plans concerned about how to invest in a volatile, late cycle environment may want to consider two practices: continue effective rebalancing and don’t postpone further duration hedging in anticipation of rising rates.
Many UK defined benefit (DB) pension funds are well along on their de-risking journey. What lies ahead now is relatively unexplored territory. Here we set out things to consider in building a runoff investment strategy.
The performance of the US dollar significantly diverged from relative rate spreads.
An alternative risk premia strategy is itself more diversified than a diversified growth fund or an all-equity portfolio.
The key political, macro and credit risks that insurers may want to address in 2019.
Bond yields remain at or near historic lows around the world, leading to a substantial increase in the value of pension plan liabilities.
While tariffs remain a concern, the key issue is the degree—which we deem moderate—of U.S. recession risk. The current global backdrop makes the U.S. dollar unlikely to strengthen. Earnings growth expectations are modest, valuations are undemanding